Of the R$15 billion from the Social Fund that were made available by the BNDES Emergency program for Rio Grande do Sul, the National Bank for Economic and Social Development (BNDES) has already mobilized R$10.5 billion for companies in Rio Grande do Sul affected by the climate tragedy.
“When we add the resources from the guarantees to the suspended credits and the financed amounts, we have already surpassed R$10.5 billion in resources that BNDES has mobilized for the state. This reflects the commitment of the bank and the federal government to the reconstruction of the state,” says the director of Digital Credit for Micro, Small and Medium-sized Enterprises at BNDES, Maria Fernanda Coelho.
The financial institution has approved more than R$6.47 billion as of August 13, in 3,123 operations. The program serves companies and entrepreneurs in areas affected by extreme weather events, as long as they have suffered material losses resulting from the tragedy. Around 80% of the resources approved so far have gone to small and medium-sized companies.
The R$15 billion of the Social Fund is divided into two budgets: approximately 50% (R$7.85 billion) for direct support to large companies (revenues exceeding R$300 million), and 50% (R$7.15 billion) for support to micro, small and medium-sized companies, through the partner network (indirect support modality) of public private banks, credit unions and other financial agents that operate in 99% of the state’s municipalities.
Working capital
Most of the program’s resources are earmarked for the Working Capital credit line: approximately R$5.4 billion in emergency credit was approved to meet the immediate liquidity needs of companies in Rio Grande do Sul, such as paying salaries, purchasing supplies and paying off suppliers, while maintaining jobs. R$990 million was approved for the Machinery and Equipment credit line. More than R$112 million was approved for the Investment and Reconstruction line.
“It is important to say that the bank is operating at a rate six times higher than the average monthly credit approvals in Rio Grande do Sul”, highlights the director, remembering that the bank also approved the suspension of payments for 12 months in more than 33 thousand contracts, totaling around R$ 1.7 billion.
